California Gov. Gavin Newsom signed a law banning state and local public officials from issuing memecoins and restricting official-linked token listings beginning in 2027.
Key Points:
- AB 2409 bars state and local public officers, along with covered public employees, from issuing memecoins.
- Platforms face restrictions on official-linked memecoins issued on or after Jan. 1, 2027.
- The law allows civil enforcement, including injunctions and potential disgorgement.
California Memecoin Ban
Newsom signed Assembly Bill 2409 on Sept. 27 after Assemblymember Avelino Valencia introduced the measure on Feb. 20. The law prohibits state and local public officers, plus certain public employees with contracting authority, from issuing a memecoin.
AB 2409 defines a memecoin as a digital asset whose identity and value are driven mainly by internet culture, public figures, events, speculation or community interest. Newsom also criticized President Donald Trump over a memecoin he launched in 2025 while discussing the legislation.
A separate rule bars digital asset service providers from listing official-linked memecoins for California residents when those tokens are issued on or after Jan. 1, 2027. The restriction applies when a token is offered by, or in partnership with, a federal, state or local public official.
The attorney general can seek injunctions and disgorgement for both restrictions, while district attorneys, city attorneys and county counsel can bring civil actions over the issuance ban. Newsom said, “No official should profit off their office.”
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Dennis Porter Backing
At an Apr. 20 Assembly Banking and Finance hearing, Dennis Porter, CEO and co-founder of Satoshi Action Fund, supported AB 2409 and said public memecoin launches had produced “negative outcomes with public trust.”
His support came from a crypto advocacy organization, while the bill itself targets conduct linked to public office rather than memecoin trading generally.
Newsom also signed Senate Bill 1208, which until Jan. 1, 2032 expands California’s money laundering law to cover qualifying transactions using digital assets. It creates a warrant-based process for seizing digital assets tied to crimes and a court process for forfeiture and distribution to victims.
Valencia introduced AB 2409 on Feb. 20. Lawmakers cleared the final version on Aug. 26 with a 40-0 Senate vote and 78-0 Assembly concurrence, and Newsom signed it Sept. 27.
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